All Forum Posts by: Alecia Loveless

@James Miley I agree. Last night’s webinar on multi family’s was excellent. I think most of the Wednesday webinars are good and focused on helping the beginning 0 door to 10 door investor get in the right set of mind to get started and to help them understand how to get move forward. It also explains how to analyze deals so you’re not buying underperforming property.

The book section is helpful because it has all the books that have been written by BiggerPockets users in one place and you can see if any of the topics interest you from Tax Advice Books to Out of State Investing to Multi Family Properties. There’s a little bit of everything and new books coming soon. Brandon Turner host of last night’s webinar said his new one is due early this summer.

Hope this helps!

@Ben Crego This should come up during your tenant screening but be sure to get emergency contacts perhaps even beyond husband/wife/partner. Like a sister, parent, friend.

This came up for me last week with an inherited tenant who is older and had become disoriented and I didn’t know who to call. I’ve only owned the building a few weeks and am a newbie. Now I’ve got contacts on everybody!

@Cassidy Burns Hoping to buy an additional 4 doors this year. Also now that it’s the end of March my plan has shifted from Brrrr to flipping my second property as the current market is so hot it would take me 40 years to achieve the same profit out of it renting it as selling it. I know I will miss tax benefits but I’m going to 1031 it into something else. So by the end lo the year looking to have 9 doors or more.

@William Moya Not saying anything on the full project but my contractor just warned me yesterday that in my area, Northern New Hampshire the cost of plywood alone has gone from $8.35 a sheet last year to $45.35 this year. He was warning me to be careful on a rehab I am interested.

I’ve got some capital from a recent property sale and expect to have about 200% more in another 2 months that I had planned to use half of for a 1031 and some of all the rest to leverage the 1031 into a much larger deal.

I've been watching a SFH in my market that's priced really affordably and two days ago had the price lowered on it. My realtor contacted the selling agent today and set up a showing for me and got more information on it. It probably needs about $35,000 worth of work to it. Given its location it likely will never appreciate greatly but if rehabbed correctly will be a home run property for cash flow and down the road will recoup my investment in both purchase price and rehab.

My realtor presented me afterward with a 3 unit he plans to bring to market in the time frame of me selling my 1031 property. It will be priced so I could do the 1031 and use some money of the other capital I have and get a small mortgage to buy it. Two units are currently rented and the third unit “needs work” to be rentable. But the realtor says I will love the location and the property and it will be a money maker. I’ve worked with him for 20 years and he knows my tastes.

I believe I can buy both, but the rehab on the third unit of the 3 unit may have to wait awhile.

Does everyone think I should attempt to buy the first SFH as the second is not guaranteed and see what happens down the road assuming the SFH shows well when I see it and etc. and play the second one by ear?

I know nothing is guaranteed in real estate, just want to make sure I’m making the right decision on this.

Thanks for helping me make the right decision!

I'm using Venom for my tenants that asked. It seems to work fine.  Slight charge for instant transfer, its free for 1-3 day transfer. I've been getting mine in 1 day. 

I'm not sure about current rates as I locked in my commercial rate at 3.5 no points mid January and closed mid February. However, I'd shop around quickly while I don't think additional pulls should affect your credit. You might want to check with a mortgage broker on BP about the validity of if it affects your credit or not, that was what I was told. That if you shopped around quickly in a week or so period it didn't.  

@Andrew Whytock I’ve bought property with cash and conventional mortgage. I always get an inspection and usually a radon test as it is prevalent where I live. Sometimes with cash I will waive the appraisal but obviously can’t with mortgage.

@Ryan Guffey When I am ready to put a property online with a tenant or tenants if multi I make sure I have a $10,000 balance In the account if at all humanly possible.

If I have been doing a rehab on the property prior to placing tenants the account may already be open and have more or less money in it according to circumstances.

I will then work my way up to having enough funds in this account to cover every worst case scenario I can think of, new roof, new furnace, trashed interior, long term vacancy if not covered by insurance, etc and work to build up my reserves as quickly as possible before starting to take profit out of a property.

I then usually set the cash flow into an interest bearing account to use as a down payment on my next deal.

I don’t really separate my capex, vacancy, etc it just all goes into my main bank account.

@David @Lynette, I think I've decided if I go the route of needing internet to pay for it on my own. Cost of doing business and will be write-off eventually. Makes more sense than getting so involved with a tenant I think. Thanks for helping me sort this out.